Product Life Cycle

Table of Contents

Introduction 2

Story of Darling Brew 3

Product Life Cycle Model Description 4

Product Development Phase 4

Introduction Phase 5

Growth Phase 7

Maturity Phase 9

Impact of the Current Life Cycle 9

Conclusion 11

Reference List 12

Introduction

According to Spencer (2009) the concept of the product life cycle was first published in 1965. The model was intended to be applied by consultants and managers in order to understand and analyse growth and revenue, in order to predict future sales growth and strategy formulation (Spencer, 2009). Komninos (2002) further states that understanding the life cycle of a product should help one comprehend the best times in which to launch or divest a product from a marketplace. In addition, the model should reflect the product’s position in the market in comparison to its competitors as well as the product’s success or failure (Komninos, 2002).

Marketing Teacher (2011) states that the theory of the product life cycle is patterned after the biological life cycle of a plant, thus imitating the stages of plantation, sprouting, stabilisation and death. A product must therefore first be researched and developed, thereafter it is introduced or launched into the market (Marketing Teacher, 2011). Strydom (2008:282) states that in this time of market introduction, aims should include brand establishment, creating customer awareness as well as availability. The next phase to consider is the growth phase whereby competitive pressure increases and consumers must continuously be reminded of the brand availability (Strydom, 2008:282). It is further stated by Marketing Teacher (2011) that the growth phase will lead the product to gather support as well as more customers, and will eventually stabilise and become mature, then after a period of time the product goes into decline and will be withdrawn.

As stated by NetMBA (2010) the duration of the cycle may last for only a few months or a century depending on...